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India – CCI Dismisses Abuse Of Dominance Allegations Against Saint Gobain.

4 December, 2013

 


On October 24, 2013, CCI passed an order dismissing the allegations of abuse of dominance against Saint Gobain Glass India Ltd. (‘Saint Gobain’). According to the Informant, HNG Float Glass Ltd., Saint Gobain had indulged in predatory/ unfair pricing, tie-in arrangements, leveraging and/or refusal to deal. CCI defined the relevant market in this case as, ‘production and sales of clear float glass in India’.


On the issue of dominance, CCI held that Saint Gobain was subject to competitive pressures, evident from the reduction in market share of established players upon the entry of new players such as Sezal Glass Ltd. This implied low barriers to entry. CCI also did not agree with the findings of DG that Saint Gobain was dominant only on account of being the largest player in the market.


CCI found no substance in the allegation that Saint Gobain had indulged in predatory pricing. Prices were above the cost of production, except for a few months, and CCI did not believe this constituted predatory pricing. Additionally, there was no proof of leveraging or refusal to deal.


CCI also held that although Saint Gobain has market power in the architectural glass segment, there is little competition in the reflective glass segment. It was also found that the Saint Gobain has spent a considerable amount of money in training architects and consumers. CCI held that this conduct did not attract the provisions of Section 4(2) of the Competition Act. Finally, CCI did not find any abuse by Saint Gobain regarding pricing or pressurizing consumers to buy its other products. In light of the above, CCI dismissed the allegations of abuse of dominance against Saint Gobain.

 

AZB

 

For further information, please contact:

 

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

 

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com


Shuva Mandal, AZB & Partners 

shuva.mandal@azbpartners.com

 

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com


Percy Billimoria, AZB & Partners 

percy.billimoria@azbpartners.com

 

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com

 

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